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Can you guys help me making this exercise on excel? Its completed, I Just need help on how to make it on excel. 1. A
Can you guys help me making this exercise on excel? Its completed, I Just need help on how to make it on excel. 1. A company has 21 toy store branches in different cities. The manager considers that the sales in thousands (Y) of each branch can be predicted from the per capita income of each city in thousands of dollars (X2).
X2 | Y | |
16.7 | 174.4 | |
16.8 | 164.4 | |
18.2 | 244.2 | |
16.3 | 154.6 | |
17.3 | 181.6 | |
18.2 | 207.5 | |
15.9 | 152.8 | |
17.2 | 163.2 | |
16.6 | 145.4 | |
16.0 | 137.2 | |
18.3 | 241.9 | |
18.3 | 241.9 | |
17.1 | 191.1 | |
17.4 | 232.0 | |
15.8 | 145.3 | |
17.8 | 161.1 | |
18.4 | 209.7 | |
16.5 | 146.4 | |
16.3 | 144.0 | |
18.1 | 232.6 | |
19.1 | 224.1 |
a. Make a scatter plot (dot plot) of the sales and per capita income for each city and find the correlation coefficient, interpreter. R= 0.8541
This graph tells us that the linear relationship is strong positive between branch sales and per capita income.
b. Estimate the linear regression model, interpret each of the parameters (0 and 1). B0= -399.02 B0 tells us that it would be lost sales ($399.02) if there is no per capita income. B1= 33.88 B1 tells us that for every thousand of per capita income sales increase by 33.88 Thousands.
c. Calculate and interpret the coefficient of determination (2). R2 = (0.8541)2 R2= 0.7295 In other words, 73% of the variability of sales (Y) is explained by the relationship with per capita income.
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